Pearl Company Uses the Periodic Inventory System to Account for Inventories

Essay

Pearl Company uses the periodic inventory system to account for inventories. Information related to Pearl Company's inventory at October 31 is given below: $\begin{array}{rllrl}\text { October } 1 & \text { Beginning inventory } & 400 \text { units } @ \$ 9.60= & \$ 3,840 \\8 & \text { Purchase } & 800 \text { units } @ \$ 10.40= & 8,320 \\16 & \text { Purchase } & 600 \text { units } @ \$ 10.80= & 6,480 \\24 & \text { Purchase } & 200 \text { units } @ \$ 11.80= & \underline{2,360} \\& \text { Total units and cost } & 2,000 \text { units } & \$ 21,000\end{array}$
Instructions
1. Show computations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at October 31.
2. Show computations to value the ending inventory using the weighted-average cost method if 600 units remain on hand at October 31.
3. Show computations to value the ending inventory using the LIFO cost assumption if 600 units remain on hand at October 31.